-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OcReOZstIZ1gcAx/b78SE/f8YF6A3loTcNavwfZB+L4wKdG/j0jXVlJN+zHKdCDB 7WBAnejhkzDkYMj1aHp6HQ== 0000813920-04-000045.txt : 20040714 0000813920-04-000045.hdr.sgml : 20040714 20040714160421 ACCESSION NUMBER: 0000813920-04-000045 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040627 ITEM INFORMATION: FILED AS OF DATE: 20040714 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CEC ENTERTAINMENT INC CENTRAL INDEX KEY: 0000813920 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 480905805 STATE OF INCORPORATION: KS FISCAL YEAR END: 1230 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13687 FILM NUMBER: 04913962 BUSINESS ADDRESS: STREET 1: PO BOX 152077 CITY: IRVING STATE: TX ZIP: 75015 BUSINESS PHONE: 9722585403 MAIL ADDRESS: STREET 1: PO BOX 152077 CITY: IRVING STATE: TX ZIP: 75015 FORMER COMPANY: FORMER CONFORMED NAME: SHOWBIZ PIZZA TIME INC DATE OF NAME CHANGE: 19920703 8-K 1 k82nd2004earn.txt 2004 2ND QTR EARNINGS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 14, 2004 Commission File Number 0-15782 CEC ENTERTAINMENT, INC. (Exact name of registrant as specified in its charter) Kansas 48-0905805 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 4441 West Airport Freeway Irving, Texas 75062 (Address of principal executive offices, including zip code) (972) 258-8507 (Registrant's telephone number, including area code) Item 7: Financial Statements and Exhibits. (c) Exhibits 99.1 Press Release of CEC Entertainment, Inc. dated July 14, 2004. Item 12: Results of Operations and Financial Condition The information furnished in this Current Report on Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of such section. On July 14, 2004, CEC Entertainment, Inc. issued a press release announcing financial results for the fiscal second quarter ended June 27, 2004. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CEC ENTERTAINMENT, INC. Dated: July 14, 2004 By: /s/ Richard M. Frank ------------------------------- Richard M. Frank Chairman of the Board and Chief Executive Officer EXHIBIT INDEX Exhibit Number Description - ------- ----------- 99.1 Press Release of CEC Entertainment, Inc. dated July 14, 2004. EX-99 2 k82nd2004.txt PRESS RELEASE FOR RELEASE CONTACT:Chris Morris July 14, 2004 Senior Vice President 3:05 p.m. Central Time Chief Financial Officer (972) 258-4525 CEC ENTERTAINMENT, INC. REPORTS RECORD SECOND QUARTER RESULTS IRVING, TEXAS - CEC Entertainment, Inc. (NYSE:"CEC") today announced record earnings for the second quarter ended June 27, 2004. Revenues for the second quarter of 2004 increased to $165.4 million from $152.9 million in the second quarter of 2003. Net income in the second quarter of 2004 increased to $15.3 million from $14.8 million in the same period of 2003. Diluted earnings per share increased to $0.40 per share in the second quarter of 2004 from $0.36 per share in the second quarter of 2003. Revenues for the first six months of 2004 increased to $372.4 million from $337.0 million in the first six months of 2003. Net income in the first six months of 2004 increased to $47.7 million from $42.2 million in the same period of 2003. Diluted earnings per share increased to $1.22 per share in the first six months of 2004 from $1.02 per share in the first six months of 2003. Chris Morris, Senior Vice President and Chief Financial Officer, stated that, "New store development and an increase in comparable store sales of 0.1% contributed to an 8.2% increase in revenue in the second quarter of 2004. Food costs increased approximately $2.1 million compared to the prior year due to higher cheese costs. During the first six months of 2004, the Company generated operating cash flow of $87.8 million, invested $36.0 million in new and existing stores and repurchased $56.3 million of common stock." Mr. Morris further added, "Based on current estimates, we expect diluted earnings per share in 2004 to range from $0.51 to $0.53 per share in the third quarter, $0.40 to $0.42 per share in the fourth quarter and $2.13 to $2.17 per share for the fiscal year." Richard M. Frank, Chairman and Chief Executive Officer, stated that, "For the first half of fiscal year 2004, comparable store sales increased 2.8% and helped fuel EPS growth of 20% despite a $3.2 million increase in food costs associated with higher cheese prices. Based on the expected continued success of our sales and profit initiatives, our commitment to quality operational execution and the financial resources necessary to execute our strategies, we remain confident in our ability to create long-term value for our shareholders." Certain statements in this press release, other than historical information, may be considered forward-looking statements, within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on CEC's operating results, performance or financial condition are its ability to implement its growth strategies, national, regional and local economic conditions affecting the restaurant/entertainment industry, competition within each of the restaurant and entertainment industries, store sales cannibalization, success of its franchise operations, negative publicity, fluctuations in quarterly results of operations, including seasonality, government regulations, weather, school holidays, commodity, insurance and labor costs. CEC Entertainment, Inc. operates a system of 479 Chuck E. Cheese's restaurants in 48 states, of which 430 are owned and operated by the Company. # # #
CEC ENTERTAINMENT, INC. CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (Thousands, except per share data) Quarter Ended Year to Date Ended 06/27/04 06/29/03 06/27/04 06/29/03 -------- -------- -------- -------- Revenues: Food and beverage $108,739 $101,233 $245,078 $222,077 Games and merchandise 55,826 50,856 125,567 113,264 Franchise fees and royalties 852 793 1,713 1,658 Interest income 7 3 14 12 -------- -------- -------- -------- 165,424 152,885 372,372 337,011 Costs and expenses: Cost of sales: Food, beverage and related supplies 21,307 18,245 45,785 40,215 Games and merchandise 7,218 6,965 15,860 14,489 Labor 47,688 43,754 100,927 91,688 Selling, general and administrative expenses 20,495 19,444 44,747 40,635 Depreciation and amortization 12,730 11,052 24,959 21,957 Interest expense 287 181 574 464 Other operating expenses 30,855 29,124 62,252 58,661 --------- -------- -------- -------- 140,580 128,765 295,104 268,109 Income before income taxes 24,844 24,120 77,268 68,902 Income taxes 9,514 9,359 29,593 26,734 -------- -------- -------- -------- Net income $ 15,330 $ 14,761 $ 47,675 $ 42,168 ======== ======== ======== ======== Earnings per share: Basic $ .41 $ .36 $ 1.26 $ 1.03 Diluted $ .40 $ .36 $ 1.22 $ 1.02 Weighted average shares outstanding: Basic 37,507 40,485 37,910 40,667 Diluted 38,604 40,983 39,107 41,036 Earnings per share and weighted average shares outstanding have been adjusted retroactively for the effect of a 3 for 2 stock split effective March 15, 2004.
CEC ENTERTAINMENT, INC. SUPPLEMENTAL FINANCIAL INFORMATION (Thousands, except store counts) Quarter Ended Year to Date Ended -------------------- -------------------- 06/27/04 06/29/03 06/27/04 06/29/03 -------- -------- -------- -------- Number of Company-owned stores: Beginning of period 420 388 418 384 New 10 4 12 8 Closed (1) (1) ---- ---- ---- ---- End of period 430 391 430 391 Number of franchise stores: Beginning of period 48 50 48 50 New 1 1 1 1 ---- ---- ---- ---- End of period 49 51 49 51
CEC ENTERTAINMENT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Thousands, except share amounts) June 27, December 28, 2004 2003 --------- ------------ ASSETS Current assets: Cash and cash equivalents..................................... $ 11,069 $ 8,067 Accounts receivable........................................... 12,313 13,103 Inventories................................................... 11,326 12,491 Prepaid expenses.............................................. 8,641 7,608 Deferred tax asset............................................ 1,487 1,487 --------- --------- Total current assets........................................ 44,836 42,756 --------- --------- Property and equipment, net...................................... 546,410 536,124 --------- --------- Other assets..................................................... 1,415 1,471 --------- --------- $ 592,661 $ 580,351 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt............................. $ 168 $ 168 Accounts payable and accrued liabilities...................... 62,452 58,736 --------- --------- Total current liabilities................................... 62,620 58,904 --------- --------- Long-term debt, less current portion............................. 63,100 64,581 --------- --------- Deferred rent.................................................... 5,798 5,153 --------- --------- Deferred tax liability........................................... 58,054 50,714 --------- --------- Accrued insurance................................................ 8,500 8,500 --------- --------- Shareholders' equity: Common stock, $.10 par value; authorized 100,000,000 shares; 54,997,150 and 54,481,913 shares issued, respectively....... 5,500 5,448 Capital in excess of par value................................ 229,910 219,071 Retained earnings............................................. 426,586 378,911 Accumulated other comprehensive income........................ 557 695 Less treasury shares of 17,601,868 and 16,042,418, respectively, at cost....................... (267,964) (211,626) --------- --------- 394,589 392,499 --------- --------- $ 592,661 $ 580,351 ========= ========= Share amounts have been adjusted retroactively for the effect of a 3 for 2 stock split effective March 15, 2004.
-----END PRIVACY-ENHANCED MESSAGE-----